Nationwide, the rising cost of living stands out as a thorn in many Americans’ side. As prices rise, businesses are also looking to reduce overhead expenditures, making it increasingly more challenging for people to find work. Then, there’s also the automation factor, which is projected to wipe out many jobs that human beings rely upon in this country.
As people’s financial situations take hits, they’re having to make adjustments accordingly. In some cases, this means taking on gig work or having to purchase fewer groceries so utility bills get paid.
Either way, a lot of Americans have it rough. In fact, many people’s situations have gotten so bad that they’re giving up on ever being able to own a home.
Most renters don’t see themselves ever becoming homeowners
The Harris Poll Thought Leadership and Future Practice recently publicized a real estate poll that speaks volumes about current times. According to the data, most renters would like to become homeowners one day; yet, 61% believe this is no longer a feasible option for them.
At the same time, 57% of renters described the American Dream’s homeownership element as “dead.” 62% agree their current areas of residence have become so unaffordable that day-to-day living is an ongoing struggle. 65% also noted that housing expenses are impediments keeping them from upward mobility.
Unfortunately, most renters don’t have very high hopes for the future. 81% believe the present housing market will worsen. 78% even remain nervous about the financial costs they’d incur from moving. Even more telling, seven in ten renters think today’s return on investment from homeownership has diminished.
What’s driving real estate market turbulence?
Worldwide disruptions endured during the COVID pandemic significantly worsened the economy and various industries like housing.
Inflation, mortgage rates, and other expenses have all skyrocketed in recent years. As real estate prices increase, housing construction has been declining for quite some time, which only serves to further exacerbate market turbulence.
Though even before COVID hit, home prices were already climbing. The pandemic aggravated an already troubled situation, truly sealing Americans into financial binds. With more people priced out of the housing market, renting is assumably here to stay.
